Bold doomsday property predictions seem to consume so much media attention – rightly so, given that the majority of Australian’s net wealth is captured within this single asset class. During COVID-19 restrictions, we’ve seen media luring readers with clickbait headlines such as:
Coronavirus Australia: House Prices could fall 30% – Scenario unveiled by NAB
Harry Dent is back predicting property prices will “fall 50%”
Despite the headlines, the disparity in opinion between most property economists is not that controversial. On further investigation, it is actually quite remarkable that their views are relatively similar. Most credible property economists provide two or more scenarios, the first a base case, and the second, a worst-case scenario.